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Investment Options
The Dallas Foundation recognizes that no single investment plan can meet every donor’s needs. That’s why we offer a variety of investment options, designed for different levels of risk tolerance and investment time horizons, so that each donor can meet his or her unique philanthropic objectives.
1. Standard Investment Pools
The Dallas Foundation offers a money market pool and three investment pools consisting of a broadly diversified mix of index funds. Each donor may recommend a change of investment pools at the beginning of any calendar quarter on three business days’ notice. If a fund has an asset balance more than $1 million the donor may request a customized allocation. As with any investment, past performance does not guarantee comparable future returns. The four pools are:
Investment Pools |
1
Money Market |
2
Fixed Income Emphasis |
3
Balanced |
4
Equity Emphasis |
Asset Allocation |
100% Money Market |
21% U.S. Eq.,
9% Int’l Eq.,
70% Fixed Income |
42% U.S. Eq.,
18% Int’l Eq.,
40% Fixed Income |
56% U.S. Eq.,
24% Int’l Eq.,
20% Fixed Income |
Investment Style |
Very Conservative |
Conservative |
Moderate |
Aggressive |
Appropriate Fund Lifespan |
<1 Year |
1-3 Years |
3-7 Years |
>7 Years |
Investment Managers in Each Pool |
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Domestic Equities: Total Market
Vanguard Total Stock Market Index Fund
Passive investment attempting to replicate the MSCI U.S. Broad Market Index, which represents 99 ½% or more of the investable U.S. equity market. |
0% |
16% |
32% |
42.7% |
Domestic Equities: Small Cap
Vanguard Small Cap Index Fund
Passive investment attempting to replicate the MSCI Small Cap 1750 Index, a broadly diversified index of stocks of smaller U.S. companies. |
0% |
5% |
10% |
13.3% |
Investment Pools |
1
Money Market |
2
Fixed Income Emphasis |
3
Balanced |
4
Equity Emphasis |
Investment Managers in Each Pool |
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International: All Markets
Vanguard FTSE All-World ex-U.S. Index Fund
Passive investment attempting to replicate the performance of the FTSE All-World ex-U.S. Index, designed to measure equity market performance in the global developed and emerging markets. |
0% |
7.5% |
15% |
20% |
International: Emerging Markets
Vanguard Emerging Markets Stock Index Fund
Passive investment attempting to replicate the performance of the MSCI Emerging Markets Index, designed to measure equity market performance in the global emerging markets. |
0% |
1.5% |
3% |
4% |
Fixed Income:
Vanguard Total Bond Market Index Fund
Passive investment that attempts to replicate the Barclays Capital U.S. Aggregate Bond Index, a broad representation of the investment-grade fixed income market in the U.S. The index includes U.S. government and corporate debt securities, mortgage- and asset-backed securities, and international U.S. dollar-denominated bonds. |
0% |
70% |
40% |
20% |
Money Market:
Goldman Sachs FST Treasury Instruments Fund
Invested in U.S. Treasury Securities only. Seeks to generate maximum current income consistent with preserving capital and maintaining daily liquidity. |
100% |
0% |
0% |
0% |
2. American Funds and Merrill Lynch
The Dallas Foundation has cooperative arrangements with American Funds and Merrill Lynch. Donors may recommend that fund assets be invested in one or more of these companies’ mutual funds.
3. Other Investments
Donors with fund balances of $1 million or more may recommend that their fund’s assets be invested with an outside manager. All outside managers must be approved by the Foundation’s Investment Committee and must agree to abide by the Foundation’s investment policy.
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